HomeContributorsTechnical AnalysisEURUSD – Daily Tenkan-Sen To Hold Corrective Dips Before Bulls Resume

EURUSD – Daily Tenkan-Sen To Hold Corrective Dips Before Bulls Resume

The Euro extends pullback from 1.0823 high on Friday and seen poised for further easing, as reversed slow stochastic on daily chart shows plenty of room downside.

The move is seen as correction ahead of fresh push higher as underlying trend remains bullish and the pair being on track for the fourth consecutive bullish weekly close.

Dips should be ideally contained above 1.0711 (daily Tenkan-sen, also near Fibo 38.2% of 1.0493/1.0823 upleg at 1.0697) to keep bullish structure intact.

Regain of 1.0827 target (02 Feb high / Fibo 38.2% of larger 1.1614/1.0339, May 2016 / Jan 2017 descend) would signal possible attack at 200SMA (currently at 1.0881).

Additional support is seen on weekly close above the neckline of asymmetric inverse H&S pattern on daily chart (1.0778) which was dented but without firm break higher so far.

Alternatively, break below 1.0700 handle would risk deeper correction and unmask daily Kijun-sen / daily cloud top at 1.0658/45.

Today’s focus is on vote on US healthcare plan that was postponed from Thursday.

Res: 1.0803, 1.0827, 1.0881, 1.0950
Sup: 1.0759, 1.0711, 1.0697, 1.0658

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
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